Nigeria unions call off nationwide strike

A dispute over a sharp hike in fuel costs had crippled Africa\'s most populous nation and largest oil producer, compounding the government\'s problems as it has also faces a wave of bloody Islamist attacks.

Nigeria Labour Congress chief Abdulwahed Omar on Monday ended the industrial action, telling a press conference: "Labour and its allies formally announce the suspension of the strike, mass rallies and protests across the country."

"With the experiences of the past eight days, we are sure that no government or institution will take Nigerians for granted again."

Union officials said they remained in disagreement with the petrol price even after the decrease, but were ready to engage in further negotiations with government representatives.

President Goodluck Jonathan in an early-morning broadcast announced a roughly one-third cut in pump prices in a partial concession to protesters after the recent scrapping of subsidies had sharply raised prices.

Soldiers meanwhile occupied main protest sites and set up checkpoints in key areas, and they later fired tear gas and shot in the air to disperse demonstrators.

Troops also drove armoured vehicles toward protesters in the economic capital Lagos to disperse them. No one was reported hurt in the incidents.

Tensions had mounted Monday morning as troops set up roadblocks and searched vehicles at key spots in Lagos for the first time since the strike began on January 9.

Amid the tense atmosphere, secret police agents also stormed the CNN office for unclear reasons in Lagos, a witness said, asking questions about expatriate staff quotas and permission to operate, but left after about 20 minutes.

Jonathan announced Monday that petrol prices would be cut by about a third, but unions had earlier vowed to press ahead with the strike while calling off street protests in response to security concerns raised by the president.

However demonstrations have been organised by a range of civil society and political organisations, and a number of groups had vowed to continue protests.

Jonathan announced the price cut in a televised national address after a week that saw him remain largely silent in public as the strike and mass protests shut down the country.

The president\'s announcement came after talks with unions had failed to resolve the dispute, with labour leaders demanding a return to pre-January 1 petrol prices.

He charged that the protests had been "hijacked" by those seeking to promote "discord, anarchy and insecurity".

"Government will continue to pursue full deregulation of the downstream petroleum sector," Jonathan said in his address.

"However, given the hardships being suffered by Nigerians, and after due consideration and consultations with state governors and the leadership of the National Assembly, government has approved the reduction of the pump price of petrol to 97 naira (about 60 US cents) per litre."

He added: "I urge our labour leaders to call off their strike and go back to work."

The government had ended fuel subsidies on January 1, causing petrol prices to more than double from 65 naira per litre to 140 naira or more.

Most in the country of some 160 million people live on less than two dollars a day, and Nigerians weary after years of blatant corruption view the subsidies as their only benefit from the nation\'s oil wealth.

Nigeria has also faced spiralling violence, most of it in the country\'s north and blamed on Islamist group Boko Haram, prompting warnings of a wider religious conflict and even the possibility of civil war.

But the main fuel protests had been largely peaceful, although at least 15 people are believed to have been killed in various incidents.

While the strike was suspended for the weekend, labour leaders had warned it would resume Monday if a deal had not been reached. An earlier threat to shut down oil production however had been put on hold.

Government officials and economists have said removing subsidies would allow much of the $8 billion a year in savings to be ploughed into projects to improve the country\'s woefully inadequate infrastructure.

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